Finnish Teboil scales back operations as stocks dwindle due to US sanctions

ISTANBUL

Finnish oil company Teboil is scaling back its operations as fuel stocks dwindle due to US sanctions on its Russian parent company Lukoil, daily Helsingin Sanomat (HS) reported on Friday.

"We are currently running down our fuel stocks, which means that some stations have already run out of certain fuel grades, and the number of such stations is rising daily," Toni Flyckt, Teboil's marketing and communications director, told HS.

New deliveries have been suspended, he said.

"It has been agreed that a limited portion of payment traffic will go through to partners, but the approval process is very slow," Flyckt added.

He also said that they are trying to separate the operations of the retailers from Teboil so they can continue their business independently.

With Lukoil subject to US sanctions, Teboil’s fuel deliveries and payment transactions have been halted. The company has until Nov. 21, as firms have been granted flexibility until then to cut their links to the fuel supply chain.

Washington recently imposed blocking sanctions on Lukoil and Rosneft, along with 34 of their subsidiaries, as part of President Donald Trump’s new measures targeting Russia’s energy sector.